CryptoDigest. 29.11

The legalization of bitcoin by El Salvador continues to generate violent discontent among the central banks and reputable financial institutions of the planet. One of the harshest critics of President Bukele is the Bank of England, which has stated with alarm that the integration of an unmanageable instrument into the financial sector of the state is capable of destabilizing the situation. What did the head of the Latin American state say to the British regulator? Read about it in the traditional digest iSpace…news…

Our attention – in addition to the transnational squabble – was attracted by the situation in the spot and crypto derivatives markets, because there is a recovery from the fall of the last week.

Meanwhile, the authorities of one of the Russian regions – the Irkutsk region – started talking about the possibility of legalizing mining – albeit in a pilot mode so far.

The rebound was inevitable

On Monday night, November 29, Bitcoin dropped below $ 54,000, hinting at the risks of a larger correction.

But already in the morning, digital assets received the long-awaited support against the background of the gradual stabilization of the situation in the stock market. By the evening, the BTC rate strengthened to $ 57,100, and the capitalization of the leading digital currency increased to $ 1.078 trillion. Following BTC, all the largest altcoins are adding to the price. So, ether (ETH) and Binance Coin (BNB) by the evening rose to $ 4,329 and $ 620.

The most successful in the TOP-10 is Solana (SOL), which added 9.70% in the afternoon to $ 207.40.

XRP, Cardano (ADA) and Dogecoin (DOGE) rose to $ 0.98, $ 1.57, and $ 0.2148.

Market capitalization increased to $ 2.570 trillion. Bitcoin dominance index was 42%.

Already now, with a certain degree of confidence, we can state that November will not be the most successful month for BTC.

In 30-day terms, the value of the cryptocurrency fell by almost 6.5%. Recall that in November 2020, bitcoin aggressively added in price. Then its yield was about 43% (according to CryptoRank).

Interestingly, the fall in value does not scare traders. On the contrary, they are actively buying altcoins and BTC during the crash. What’s more, according to Glassnode, the number of Ethereum addresses with non-zero balance has set a new record today.

Where does the wind blow?

As you know, the futures market is often a reliable benchmark for spot prices for bitcoin. At the end of last week, even the next wave of correction did not erode the optimism of institutional investors.

OKEx Insights’ weekly review notes that the expectations of many strategists were met, and the support for Bitcoin for $ 52,000 worked successfully. Experts pointed to two strong support areas ranging from $ 50,000 to $ 52,000 and talked about the subsequent consolidation of the cryptocurrency.

In contracts with settlement dates December 31 and March 25, bitcoin prices are quoted in the region of $ 54,290 and $ 55,750, with a premium of $ 290 to $ 1,750. Such data speaks of continued optimism as traders expect the fourth and first quarters to end at higher values.

The long / short ratio on OKEx reached 2 pips. A week earlier, this figure was 1.8. An increase in the indicator indicates an increase in the number of longs (long positions), focusing on the long-term growth in the value of bitcoin. It remains for us to remain optimistic and study the trajectory of the coin this week.

What did El Salvador say to the Bank of England?

The head of the British regulator Andrew Bailey told Bloomberg that El Salvador took an extremely risky step, recognizing bitcoin as a legal means of payment. According to him, the country will face big problems that could undermine financial stability.

President Nayib Bukele literally ridiculed Bailey. In a post on Twitter, he questioned the Bank of England’s sincerity for the Salvadorans: “Bank of England “worried” about El Salvador accepting bitcoin? Oh really? Perhaps the Bank of England is genuinely concerned about the welfare of our people? Yes you! Certainly. They’ve always cared about our people. Is always. I love the Bank of England“.

The leader of the Latin American state is not only not going to listen to the advice of the Central Bank of Britain, but will continue to develop the bitcoin infrastructure.

At the end of last week, it became known that El Salvador again took advantage of the temporary drop in BTC and replenished its reserves for another 100 coins.

Pay taxes and mine in peace

Last week, State Duma Deputy Anton Gorelkin made a proposal to legalize the mining of cryptocurrency in certain limited areas. A similar initiative was announced to the media today by the Irkutsk Governor Igor Kobzev.

In his opinion, miners should obtain the status of entrepreneurs and start mining cryptocurrency legally. As a pilot project, mining can be legalized in a separate region – for example, in the Irkutsk region, where the load on the power grid has increased since January due to underground “miners”.

If the state provides an appropriate regulatory framework, regional authorities will be able to legally lease industrial facilities to miners. In return, individuals and legal entities will pay taxes to the budget.

“When all this is formed legally and legally formalized for investors who are engaged in this entrepreneurial activity, we will find sites for them,” the governor emphasized.

Sources: CryptoPotato, CoinMarketCap, Twitter, Glassnode, OKEx Insights, TASS